[TF Securities Pharma Yang Song Team] Huahai Pharmaceutical Update: First Innovative Drug Approved, Innovation Transformation Enters Harvest Period

English summary

Event: On July 29, 2026, the company's first innovative drug, an IL-36 monoclonal antibody, was approved for marketing in China for the indication of generalized pustular psoriasis. It is the world's second and China's first marketed IL-36 monoclonal antibody. # Efficacy: Registered Phase II clinical data show that after IL-36 administration, the pustule clearance rate reached 77.8% within one week, superior to the competitor's 59% (not head-to-head), demonstrating significant efficacy. We are optimistic about the domestic commercialization potential of the company's first innovative drug in its niche field and its overseas licensing potential. Interim results exceeded expectations; some API products have begun to raise prices. The company released its 2026 interim results forecast: 2026H1 net profit attributable to shareholders is approximately RMB 756-799 million (YoY +85-95%), non-GAAP net profit (deducting non-recurring items) RMB 418-455 million (YoY +15-25%). Main non-recurring factors include: (1) Valsartan European arbitration victory, one-time gain of approximately RMB 82 million; (2) Disposal of 67% equity of subsidiary Huahai Tianheng, gain of approximately RMB 250 million; (3) Exchange impact of RMB 89 million.…